When the Fed Injected Newly-Made Money into the Economy by Buying

question 57

Multiple Choice

When the Fed injected newly-made money into the economy by buying bonds, it:

• A) was practicing quantitative easing.
• B) was enacting expansionary fiscal policy.
• C) was enacting contractionary monetary policy.
• D) raised the reserve requirement.

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Definitions:

Tax Rate

The division of one's or a company's income that is allotted by the government for tax purposes.

Total Sales

This figure represents the aggregate revenue a company generates from selling its goods or services within a specific period.

Costs

The value of financial resources consumed in the production of goods or services, including material, labor, and overhead expenses.

Net Income

This is the total profit of a company after all expenses, including taxes and interest, have been deducted from total revenue.